Determinants of Supply and Demand, Circular Flow of Economics

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

What does point C represent on the Circular Flow diagram?

• Firm

• Factor Market

• Individual

• Product Market

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

• Individuals

• Businesss

• Factor Market

• Product Market

What is being represented by the "red flow line"

• The flow of money

• The flow of goods and services

• Taxes

• Productive resources

In the circular flow model, what do individuals sell to the factor market

• Services

• Money

• Productive Resources

• goods

What do businesses provide for consumers according to the circular flow model?

• goods and services

• only goods

• only services

• taxes

The circular flow is made up of a continuous interaction of which three groups?

• Workers, government and transportation

• Homeowners, business owners, car dealers

• Factories, farmers, and workers

• Households, government, and businesses

What is the primary determinant of supply in a market economy?

• A) Consumer preferences

• B) Production costs

• C) Government regulations

• D) Technological advancements

In the circular flow model, what role do households play in the factor market?

• A) Buyers of goods and services

• B) Suppliers of labor and resources

• C) Regulators of economic activity

• D) Producers of goods

Which of the following is a determinant of demand?

• A) Price of related goods

• B) Cost of production

• C) Number of suppliers

• D) Technological change